In the world of real estate investment and management, few figures spark as much debate as Donald Trump. His approach to property investment has been both lauded and criticised, often dividing opinion among experts and novices alike.
We delve into some of Trump’s most quoted real estate rules, dissecting their applicability and effectiveness in today’s market. We take a critical yet open-minded view, understanding that while real estate markets are dynamic and complex, certain principles can have universal relevance. From the willingness to invest in prime locations to the art of negotiation, we explore whether Trump’s strategies are the golden rules to follow or if they’re sometimes better taken with a pinch of salt.
Be Willing to Pay a Premium for a Prime Location
WE AGREE This can be a good strategy, a location becomes ‘Prime’ based on multiple factors including but not limited to accessibility to good schools, roads, and amenities.
Where you can track a long-term consistency in pricing, a constant shortage in supply and a reputation for the kind of purchasers who can afford to buy and live there… you can usually be confident that there are very few reasons for a ‘Prime status’ to change.
There’s No Right Price for the Wrong Property
WE AGREE But the definition of wrong depends on the buyer. Is this the wrong type or style of property, wrong condition, or location for your requirements? all can lead to regrets no matter what you have paid, the price does not convert the property from wrong to right!
Have a Vision for Whatever Property You’re Planning To Buy
WE AGREE BUT with the acceptance that your vision may change or must become more realistic. We can all dream. reach for your Moon and possibly become contented with your own Star! property searching is a journey.
Buy Real Estate When It’s Cheap If You See A Potential for Growth
WE AGREE WITH CAVEATS When is it cheap? That is the question, ‘buy when everyone is selling and sell when everyone is buying ‘ is a great strategy but is not for the faint hearted.
If every property purchaser did this and hit the bottom or the top every time, we would not have an investment or property market as there would be minimum activity in between.
Make a judgement call based on knowledge and experience, learn to identify the ebbs and flows, the rise and fall and then hit go! You may be close enough to the bottom, just accept you may miss it (plus or minus) only time will tell.
Don’t Let Anyone Else Negotiate for You
WE DISAGREE (as you would expect!) Unless you are confident, experienced and are willing to play the game.
A low offer to buy, can feel uncomfortable, and a low offer received by a seller, can feel insulting, but someone must hit the first ball over the net… negotiation involves ‘two starting points’ and a ‘meet somewhere in between’ finale!
An independent source, with clear instructions from you is more likely to do this objectively such as an Sourcing Agent, and you get thinking time between each step, preventing ill-considered responses!
Contact us now to see how we can help you on your investment journey.